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CMA Intermediate · Operations Management and Strategic Management · Introduction to Strategic Management

Which of the following is a feature that distinguishes strategic decisions from operational decisions?

Strategic decisions affect the organisation's long-term direction and are taken under uncertainty with the external environment in view, whereas operational decisions are frequent, procedural, delegated and short-term in nature.

  1. AThey are made frequently and follow set procedures
  2. BThey affect the long-term direction of the organisation and are made under uncertaintyCorrect
  3. CThey are delegated to lower-level supervisors
  4. DThey involve only internal factors and no external environment

Explanation

Strategic decisions shape long-term direction, involve uncertainty and consider the external environment. Frequent, procedure-based and delegated decisions are characteristics of operational decisions, and strategic decisions do not ignore external factors.

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